Study: Over 100K Jobs at Risk with Tariffs on Auto Parts

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July 9, 2018—The Auto Care Association recently urged President Donald Trump’s administration to consider the severity of unintended consequences that could result from imposing tariffs on imported vehicles and auto parts. Included in those concerns are the possibility that the auto industry’s workers could have their jobs at stake.

The association explained that the auto industry’s “ability to source parts and components globally supports U.S. auto exports, provides U.S. consumers with a wider selection of vehicles and parts, and keeps vehicle repair and maintenance costs affordable for working families ... the availability of affordable high-quality parts from foreign sources creates thousands of jobs that might be threatened, should the Trump administration move forward with a tariff on vehicles and vehicle parts.”

Included in the auto association’s comments was a recent economic study completed by John Dunham and Associates which found that a 25 percent tariff on imported auto parts could cause a reduction of 17,800 jobs in the auto parts manufacturing sector, resulting in $1.4 billion in lost wages.

Furthermore, as noted by the American Journal of Transportation, the study suggests that 6,800 jobs would likely be lost by repair shops and an additional 85,200 jobs in the auto care wholesale and retail segment due to lower demand.



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